Daily Times

Karachi: Foreign Direct investment FDI continued to show encouraging growth as in the first five months of current fiscal year (July-November), 5MFY18, FDI posted substantial growth of 57 percent to $1,146.4 million as compared to $729.4 million invested during the same period of the previous fiscal year, FY16, State Bank of Pakistan data shows.

China emerged as the single largest foreign investor in Pakistan with total investment of $861.1 million made during the month of July-November 2017, up from $231.5 million invested during the same period of last fiscal year,

The contribution of Malaysia in Foreign Direct Investment FDI was second biggest to the tune of $ 116.8 million which is far higher than the investment of $ 11.9 million made during the same period of last fiscal year 5MFY17.

Other major contributors to the FDI were France $48.1 million, Netherlands 46.1 million, United States of America $ 43.2 million, UAE $ 26.1 million, Japan $27 million, Hungary $32.6 million, and United Kingdom invested $ 21.1 million during the first five months of current fiscal year.

During the current fiscal year the power sector has attracted major chunk of investment which is evident from the inflows of foreign investment of $ 557.8 million. The major chunk of investment was made in the coal which stood at $ 407.9 million, thermal $56.9 million and Hydel $ 93 million, SBP data shows.

The investment is power sector is producing the desired results as one of the power plants implemented under CPEC recently started its operations while other Unit is scheduled to generate electricity by February next year.

The other prominent sector to attract foreign investment was construction which received $ 276.9 million.

The communication sector received $ 121.8 million during 5MFY18 while financial businesses attracted $91.3 million during the same period.

Trade received $56.9 million, Transport equipment received $18 million of which cars manufacturing sector attracted $ 17.3 million. During the last fiscal year FY17 overall volume of investment was $2,410.9 million as the China stood out single biggest investor with total investment of $1,240.3 million.

The investment, in the backdrop of ongoing mega projects under CPEC, mainly from China is gradually increasing which is likely to attract other countries to reap the financial benefits of the mega projects.

Published in Daily Times, December 16^th 2017.